The Organised Private Sector of Nigeria has rejected the proposed amendment to the Nigeria Social Insurance Trust Fund Act, describing the move by the Senate as a dangerous attempt to hijack and politicise the management of workers’ social protection funds.

The OPSN, which comprises the Manufacturers Association of Nigeria, the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, the Nigeria Employers’ Consultative Association, the Nigeria Association of Small and Medium Enterprises, and the Nigeria Association of Small Scale Industrialists, warned that the amendment threatened transparency, accountability, and the very foundation of the Fund’s governance structure.

In a letter sent to the Senate President, signed by the Directors-General of the five member-organizations, the OPSN urged the Senate to immediately halt the legislative process, which has already passed second reading, insisting that the proposed changes would undermine the NSITF’s tripartite structure and violate international labour standards.

The letter expressed profound concern, stating: “These amendments threaten to fundamentally weaken the NSITF governance structure, erode accountability and transparency, and expose the Fund to undue political interference,” the OPSN declared.

The body anchored its defense of the current structure on global standards, noting: “The NSITF was founded on a tripartite structure, representing Government, Employers, and Labour, in strict alignment with International Labour Organisation, ILO, Convention 102 on Social Security (Minimum Standards), Convention 144 on Tripartite Consultation, and Convention 87 on Freedom of Association and Protection of the Right to Organise.”

The OPSN stressed that these Conventions, which Nigeria has ratified, require that social security institutions be managed with the full and effective participation of social partners, ensuring that the interests of both contributors and beneficiaries are protected from political or unilateral government control.

They pointed out the core problem with the proposed amendment, stating: “The proposed amendment seeks to reduce the representation and influence of employers and workers, who are the main contributors and beneficiaries of the Fund, while increasing government control through political appointments.”

They warned against the implications of this approach: “This approach is not only contrary to the spirit and letter of the ILO Conventions but also undermines the principles of good governance, transparency, and accountability that are essential for the effective management of social security funds.”

The OPSN further cited international recommendations, noting that “The ILO’s Recommendation 202 on Social Protection Floors further underscores the need for participatory, transparent, and accountable governance in social protection systems, warning against the dangers of politicisation and lack of stakeholder involvement.”

The private sector group noted that “the NSITF Management Board, as currently constituted, serves as the trustee and conscience of the Fund by ensuring prudent and transparent management of contributors’ resources.”

It warned that weakening or replacing the Board with a politically dominated structure would erode the Fund’s autonomy, encourage mismanagement, and jeopardize the security of millions of Nigerian workers and their families.

They also clarified the NSITF’s sole statutory role, stating: “It is important to clarify that no two agencies are managing the NSITF. In fact, the NSITF is the sole, statutory agency responsible for implementing the Employees’ Compensation Act, ECA.”

The OPSN cautioned against creating confusion, saying: ”Any attempt to create parallel structures or to repeal or alter this arrangement, under the guise of reform, would not only remove existing safeguards but also contravene international standards and expose the Fund to unnecessary risks, including the potential for confusion and mismanagement,” the OPSN said.

The OPSN also criticized the Senate for focusing on what it described as “an unnecessary and potentially damaging amendment,” instead of addressing more pressing legislative needs such as the passage of the long-delayed Nigeria Labour Law Bill.

The group lamented: “We are deeply concerned that, while the Senate prioritises an unnecessary and potentially damaging amendment to the NSITF Act, which has no operational defects, the long-overdue Nigeria Labour Law remains stalled.”

They stressed the importance of the stalled bill, saying: “This bill is critical for the future of work in Nigeria. It is designed to address urgent gaps in the nation’s labour and employment laws, improve dispute resolution, enhance workplace safety, promote social dialogue and clarify the rights and responsibilities of all parties,” OPSN lamented.

The group called on President Bola Ahmed Tinubu and Senate President, Godswill Akpabio, to intervene and stop the process initiated by the Senate Committee on Labour and Employment.

The OPSN stressed the sanctity of the Fund: “The NSITF, as a cornerstone of Nigeria’s social protection system, must not be politicised or weakened.”

They reaffirmed the necessary governance foundation, stating: ”Its governance must remain firmly rooted in tripartism, transparency and accountability as enshrined in ILO Conventions and international best practices,” the OPSN stressed.

The OPSN reaffirmed its commitment to working with government and organized labour to strengthen, not weaken, institutions that safeguard the welfare and security of Nigerian workers, warning that the future of industrial peace and social protection depended on resisting any attempt to compromise the integrity of the NSITF.